More currency influx could be required for Indian economy due to demonetisation

With the country's GDP size increasing in quantitative terms, there could be need for more currency in the economy, a source said here Thursday. Following demonetisation in November 2016, when the government junked high value currency notes of denominations 500 and 1,000, there was a shrinkage of currency in the system. Now, with the growth in Gross Domestic Product (GDP), there may be a need for more currency, the source said. Post-demonetisation, the government re-introduced Rs 500 banknote but the Rs 1,000 currency note was discontinued. However, banknotes of denomination 2,000 was introduced during the period. The source said there has been a decline in counterfeit notes and whatever little is in circulation is "very crude counterfeiting".